Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 220 - Imputation for NZ resident companies and related companies  

Subdivision 220-B - NZ company treated as Australian resident for imputation system if company chooses  

SECTION 220-50   Cancelling an NZ franking choice  

220-50(1)    
The Commissioner may cancel a company's *NZ franking choice by written notice given to the company, but only if the Commissioner is satisfied that either:

(a) the company was liable to pay *franking deficit tax or *over-franking tax (whether or not because of section 220-800 (about joint and several liability for the tax)) and the company did not pay the tax by the day on which it was due and payable; or

(b) the company has not complied with subsection 214-15(2) or 214-20(2) (about giving the Commissioner a *franking return).

220-50(2)    
To avoid doubt, the cancellation takes effect when the notice is given to the company.

Review of cancellation

220-50(3)    
If the company is dissatisfied with the cancellation of the choice, it may object against the cancellation in the manner set out in Part IVC of the Taxation Administration Act 1953 .

Note:

That Part provides for review of the cancellation objected against.

Effect of cancelling a choice on making another choice in future

220-50(4)    
If the company makes another *NZ franking choice, it does not come into force unless the Commissioner consents in writing to the choice coming into force.

220-50(5)    
In consenting, the Commissioner may specify when the choice is to come into force. The consent has effect according to its terms, despite section 220-40 .

220-50(6)    
The Commissioner must give a copy of the consent to the company.